Kraken Commits $2M to Pro-Crypto Political Groups
Exchange says it is fighting for digital freedom, but critics see political ties
Kraken has pledged $2 million to politically aligned groups, calling it part of an ongoing fight to protect crypto rights in the United States. The move comes as lawmakers push forward with new digital asset regulations that could reshape the industry.
Co-CEO Arjun Sethi confirmed the donations in a post on X, revealing that Kraken will provide $1 million to the Freedom Fund PAC and another $1 million to America First Digital. He argued that crypto’s core principles, including privacy and self-custody, are at risk due to regulatory uncertainty, privacy tool bans, and attempts to criminalize infrastructure.
A Kraken spokesperson said the exchange is not backing political parties but principles. “Crypto is a non-partisan issue. We will support candidates who advance pro-crypto policies and clear regulatory frameworks,” the spokesperson said. Still, both recipient groups are linked to pro-Trump and Republican causes, raising questions about Kraken’s political neutrality.
The donations come amid growing momentum for crypto legislation. In July, the GENIUS Act on stablecoins passed the House with bipartisan support. Senator Cynthia Lummis later suggested a digital asset market structure bill could reach President Donald Trump’s desk before the end of 2025. The legislation aims to define the roles of the SEC and CFTC in overseeing digital assets.
Kraken emphasized the scale of crypto adoption, citing more than 50 million Americans owning digital assets and the clear message from the 2024 elections for policymakers to embrace innovation.
Meanwhile, the political battle is heating up. Fellowship PAC, a new crypto-focused committee, launched this month with over $100 million to support pro-crypto candidates, adding to the influence of groups like Fairshake PAC, which spent $130 million in 2024.